Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Xetra  >  SAP AG    SAP   DE0007164600

SAP AG

(SAP)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

SAP : vows to ease cloud transition; German customers less keen

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/17/2018 | 08:28am EDT
FILE PHOTO: The logo of German software group SAP is pictured at its headquarters in Walldorf

LEIPZIG, Germany (Reuters) - Software company SAP said it plans to offer more support to help reluctant clients shift to its latest cloud-based business suite, a transition crucial for its future profitability.

In SAP's native Germany, which accounts for 14 percent of global sales, only 10 percent of customers are willing to move core processes into the cloud, according to a survey by the DSAG user group that hosted a gathering in Leipzig this week.

SAP, Europe's most valuable technology company, is trying to accelerate the adoption of its premium S/4HANA cloud suite, which it wants to replace software run on local servers that it plans to phase out by the middle of the next decade.

Achieving scale as a platform company is vital for SAP to expand its margins while weaning itself off the juicy up-front licence fees earned on its traditional enterprise planning software used to run finance departments and supply chains.

"We want to reduce both the costs for our customers and the time it takes to implement the new software," Uwe Grigoleit, global vice-president at SAP, told Reuters in an interview on the sidelines of the SAP user conference.

SAP is due to report third-quarter financial results on Thursday. Analysts will be looking to hear an update on its push into sales and marketing where it competes, among others, with cloud-only player Salesforce.

Only 41 percent of core SAP customers surveyed expect to complete the transition to S/4HANA by 2025, the year the company plans to stop servicing its workhorse Business Suite enterprise software.

The rest want to keep core business processes running on their own servers, DSAG board member Marco Lenck told the conference, cautioning technology providers that they shouldn't force cloud-only products on the market.

"Many users are concerned that cloud services won't cover all their business processes," he said.

S/4HANA, launched in 2015, typically takes between seven and nine months to get up and running. Some 2,100 customers are running the suite live, but a further 34,000 could potentially make the switch, SAP estimates.

"We will need an expanded product offering," Lenck said.

(Writing by Douglas Busvine; editing by David Evans)

By Nadine Schimroszik

Stocks mentioned in the article
ChangeLast1st jan.
SALESFORCE.COM -1.54% 142.33 Delayed Quote.3.91%
SAP AG -1.57% 117.7 Delayed Quote.37.47%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on SAP AG
09:05aSAP : Technology Turns Human with Flexso Digital
PU
06:34aEUROPE MARKETS: European Chip Stocks Dragged Lower After Texas Instruments' W..
DJ
06:25aSAP : Verizon and SAP Codeveloping Next-Generation IoT Analytics Solutions
PU
10/22Nike's Parker hands over CEO role to former eBay chief
RE
10/22MARK PARKER : Nike's Parker hands over CEO role to former eBay chief
RE
10/22IoT Insurance Market Is Booming Worldwide with CAGR of 65.89% | Google, Lemon..
AQ
10/22SAP : The Intelligent Enterprise Goes the Distance for High-Performing Business
PU
10/22SAP : Goldman Sachs Banks on Employee Experience to Drive Business Results
PU
10/22EUROPE : European shares rise amid Brexit tussle as focus shifts to earnings
RE
10/22SAP : Extends Its Microsoft Partnership
DJ
More news
Financials (EUR)
Sales 2019 27 641 M
EBIT 2019 8 183 M
Net income 2019 3 405 M
Debt 2019 9 192 M
Yield 2019 1,28%
P/E ratio 2019 39,6x
P/E ratio 2020 28,2x
EV / Sales2019 5,49x
EV / Sales2020 5,02x
Capitalization 143 B
Chart SAP AG
Duration : Period :
SAP AG Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SAP AG
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 37
Average target price 131,11  €
Last Close Price 119,50  €
Spread / Highest target 30,5%
Spread / Average Target 9,71%
Spread / Lowest Target -27,2%
EPS Revisions
Managers
NameTitle
William R. McDermott Chief Executive Officer
Hasso Plattner Chairman-Supervisory Board
Christian Klein COO-Intelligent Enterprise Group
Luka Mucic Chief Financial Officer
Juergen Mueller Head-Innovation & Technology
Sector and Competitors
1st jan.Capitalization (M$)
SAP AG37.47%158 914
ORACLE CORPORATION19.85%177 617
INTUIT28.69%65 884
SERVICENOW, INC.28.24%42 805
CONSTELLATION SOFTWARE INC.48.34%20 992
RINGCENTRAL, INC.86.07%12 728